FRAMINGHAM, MA--Jan. 10, 2014; Today, IDC Manufacturing Insights announced the
initial results from its national consumer survey in the report, Methods
and Practices: Connected Vehicles and Consumer Connectivity Preferences,
(Doc #MI245571). The survey, developed over the past six months with input
from key industry stakeholders, was designed to assess the current
situation and potential challenges associated with connected vehicle
technology adoption. According to the results, almost 50% of consumers
consider it vital to have access to a phone in the vehicle and about 40%
consider it vital to access apps such as navigation and music while in the
vehicle. And, while only about one-quarter of all consumers consider it
vital to utilize the phone for business when in the vehicle, almost half of
the baby boomer population (consumers between the ages of 45 and 65)
consider it vital to access the phone in the vehicle for business and
applications, signifying that this group has a strong connected identity
beyond personal use. This is a significant finding for connected vehicle
stakeholders, especially automakers, because baby boomers continue to have
the majority of "buying power" today for large investments such as homes
and vehicles.

“Therefore, automakers that have a strategy to provide consumers
the ability to access their current device's service through the vehicle,
but also gain access to any OEM unique embedded services that come with the
vehicle, will gain an advantage in the connected vehicle market.”

Investments in connected vehicle capabilities and accompanying services
— intended to provide the driver with an array of benefits, many of
which focus on increased safety — are ongoing by automakers and a
host of other ecosystem players. However, IDC Manufacturing Insights
asserts that an insufficient amount of consumer research has been performed
by these stakeholders to focus these investments, and because of this, a
number of development efforts made thus far may suffer from low adoption.
The results of IDC Manufacturing Insights' new study can help automakers,
suppliers, and other third parties develop a more thorough understanding of
consumer wants and concerns with relation to this evolving vehicle
technology and what it enables, and as a result, fine tune their
development efforts. Additional study findings include:

Three-quarters of respondents prefer to access in-vehicle services
through their existing mobile device, maintaining their "digital identity".
The majority of consumers (two-thirds) would prefer their existing mobile
service provider for emergency and other in-vehicle services, if given a
choice. Thirty-five percent of consumers believe connected and emergency
services should be included free with the vehicle, but 50% of consumers
find $24-60 per year a reasonable price range to pay for the services.

"According to our study, most consumers find it vital to access the
phone in the vehicle but also want to maintain their 'digital identity' by
connecting their current device to the vehicle," says Sheila Brennan,
Program Manager for IDC Manufacturing Insights' Connected Vehicle
Strategies research. "Therefore, automakers that have a strategy to provide
consumers the ability to access their current device's service through the
vehicle, but also gain access to any OEM unique embedded services that come
with the vehicle, will gain an advantage in the connected vehicle
market."

The report is the first in a series that will showcase the study
results, and examines key characteristics of the study population,
including current vehicle age and condition, technology currently owned,
daily commute distance, and new vehicle purchasing intent. According to the
report, all future vehicles will likely have innovative technologies that
include built-in dashboard "infotainment" systems, allowing for hands-free
communication and access to a wide range of "applications" that initiate
services, access information and music, provide navigation and so forth.
However, despite the need for and consumer interest in connected vehicle
functionality, IDC Manufacturing Insights predicts adoption, via new
vehicle model purchases, will continue to be slow.

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